Who needs renters insurance? If you’re a renter, you might – especially since U.S. statistics show that renters experience higher rates of property crime, theft, and burglary than people who own their home.
What’s more, said Manny Rios, vice president of Underwriting & Marketing at Homesite Insurance (www.homesite.com), renters are still in danger of losing their belongings from disasters such as water damage, fire, smoke, and other perils.
“Despite the risks, many renters do not have renters insurance,” Rios said. “Renters insurance can help with the financial impact of losing your TV, furniture, clothing – everything in your apartment, when due to a covered loss.”
“When you add up the cost of your possessions, you could be looking at having to replace thousands of dollars worth of merchandise if it’s destroyed, stolen, or damaged. Most people simply can’t afford to replace everything at once.”
When you look at the trade off, paying a small premium for coverage — many policies cost less than $200 per year – against paying to replace what has taken you years to accumulate, getting renters insurance makes sense.
Renters insurance can also provide additional protection such as living expenses assistance, personal liability insurance, and medical payments coverage.
“If someone slips and falls on your rented property and you are sued, renters insurance could cover some or all of your legal obligations – depending on the type of coverage you have – and help pay for medical bills,” Rios added.
Renters reportedly should also look into purchasing optional coverages to protect against hazards not covered in a basic renters policy. If renters live in an earthquake or flood prone area, getting coverage for these particular threats might be a good idea as well. Moreover, having replacement cost coverage might allow them to replace possessions with a new or like item with no deduction for depreciation. There are numerous coverages or endorsements that can provide a renter with maximum insurance protection against different risks.
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